This free Michigan real estate exam study guide covers both portions of the Michigan salesperson licensing exam — the Michigan state-specific law tested under the and the national/general principles tested across the country.[1] The state portion has its own distinct rules, so we teach it first.
The exam is administered by PSI as 115 questions in two separately scored parts — an 80-question national portion and a 35-question Michigan portion, each needing 70% to pass.[4]It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions.
Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our Michigan practice questions and flashcards. Two areas reward the most study time on the state side: LARA license law and Michigan agency and disclosure.
Michigan Real Estate Exam Snapshot
| Detail | Michigan salesperson exam |
|---|---|
| Regulator | Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing |
| Governing law | Article 25 of the Occupational Code (PA 299 of 1980), MCL 339.2501 et seq. |
| Testing provider | PSI |
| Questions | 115 total — 80 national + 35 Michigan state |
| Passing score | 70% on each portion (56 of 80 national; 24 of 35 state), scored separately |
| Time | About 180 minutes (3 hours) for both portions |
| Pre-license education | 40 clock hours (incl. at least 4 hours civil rights/fair housing) |
| License term & CE | 3-year cycle; 18 hours of CE per cycle (2 hours/year legal updates) |
Confirm the current question counts, fees, and education rules with LARA before you test — Michigan updates its requirements periodically.[1][4] The weighting below reflects the Michigan state-portion topics; license law and the Article 25 rules dominate it:
Michigan does not publish a fixed public percentage breakdown for the state portion, so treat these as a planning guide built from the tested topics.[4] This guide teaches the Michigan state law first, then all eight national content areas, each ending in a checkpoint quiz.
115 questions in all, about 3 hours. The portions are scored separately — you must pass both, and you can retake just the part you failed.
1 · LARA, Article 25 & Michigan License Law
The heart of the Michigan portion. Who regulates real estate in Michigan, how you become and stay licensed, the trust-account and escrow rules a salesperson must follow, and the funds that replace a recovery fund.[2]
Michigan real estate law flows from the statute (Article 25) to the rules to the agency(LARA) that enforces them. The exam’s state portion is built on this stack.
- Occupational Code — Article 25 (PA 299 of 1980)MCL 339.2501 et seq. — the Michigan statute passed by the Legislature that governs real estate broker and salesperson licensing and practice.
- Administrative Rules (Mich. Admin. Code R. 339.xxxxx)Rules that implement the statute — covering trust accounts, advertising, documents, education, and professional conduct.
- LARA — Bureau of Professional LicensingThe Department of Licensing and Regulatory Affairs unit that licenses and regulates real estate licensees and handles discipline.
- Board of Real Estate Brokers and SalespersonsA nine-member board (six professional + three public) that works with LARA to set standards and advise on regulation.
Unlike many states, Michigan has no consumer recovery fund — it funds a Real Estate Education Fund and an Enforcement Fund instead.
LARA & the Occupational Code
The regulates licensees through its under (PA 299 of 1980). A nine-member works with LARA to set standards. Don’t confuse LARA with the Michigan REALTORS® trade association, which is not the regulator.
Michigan Licensing & Education
To be licensed, a salesperson completes a 40-clock-hour LARA-approved prelicensure course (including at least 4 hours of civil rights and fair housing), completed within the last 36 months, then passes the two-portion exam and activates the license under an .[1] A salesperson always works under a broker and is paid commission through that broker — never directly by a client.
- 1 · 40-hour prelicensure courseComplete a LARA-approved 40-clock-hour salesperson course (including at least 4 hours of civil rights / fair housing) within the last 36 months.
- 2 · Apply through LARASubmit the application and fees to LARA's Bureau of Professional Licensing.
- 3 · Pass the PSI examPass both the national (56 of 80) and Michigan state (24 of 35) portions — 70% on each.
- 4 · Activate under a brokerThe salesperson license is issued and must be activated under a licensed employing broker.
A salesperson must always work under a licensed employing broker — never independently.
Trust Accounts & Escrow Timing
A Michigan broker must hold client funds in a separate non-interest-bearing demand account at a recognized depository, kept apart from the broker’s own money. Under MCL 339.2512, earnest money must be deposited within 2 banking days after notice that the offer was accepted by all parties. client funds with the broker’s operating funds is a violation.
Education & Enforcement Funds
Here Michigan differs from most states: it has no consumer recovery fund. Instead, license fees finance the ($15 of each fee per 3-year cycle) and the , which LARA and the Attorney General may use only to investigate and enforce against unlicensed activity and real estate fraud (MCL 338.2237).[2] A consumer harmed by a licensee pursues a civil remedy and a LARA complaint.
Checkpoint · Area 1 · LARA & Michigan License Law
Question 1 of 10
Which Michigan statute governs the licensing and regulation of real estate brokers and salespersons?
2 · Michigan Agency, Disclosure & Fair Housing
The most distinctively Michigan material.How agency disclosure works, the seller disclosure a residential transfer requires, Michigan’s broad fair-housing law, and the transfer tax a sale triggers.[3]
Agency Disclosure (MCL 339.2517)
Under , a licensee must disclose the available agency relationships — seller’s agent, buyer’s agent, dual agent, and — in writing, before the consumer shares confidential information. is legal only with the knowing, informed written consent of both parties. A buyer’s agent owes fiduciary duties to the buyer even though the seller may pay the commission.
The Seller Disclosure Act
Michigan’s (PA 92 of 1993) requires a for transfers of 1 to 4 residential dwelling units, delivered to the buyer beforethe seller executes a binding purchase agreement. It is a disclosure of the property’s known condition, not a warranty. For pre-1978 housing, the federal lead-based paint disclosure also applies.
Michigan’s Seller Disclosure Act requires sellers of 1-to-4 residential units to reveal known conditions. These are the documents the exam tests most.
The Seller’s Disclosure Statement must be delivered before the seller signs a binding purchase agreement.
Elliott-Larsen Civil Rights Act
Michigan’s primary fair-housing law is the (PA 453 of 1976). Beyond the seven federal protected classes, it also bans housing discrimination based on age, height, weight, and marital status — and, after 2023-2024 amendments, sexual orientation and gender identity or expression.[5] Michigan licensees must comply with both the federal and the broader state protections.
Real Estate Transfer Tax
Michigan imposes a of $3.75 per $500 of value and a of $0.55 per $500 in most counties — combined $4.30 per $500 (or fraction). The seller customarily pays both.
Two transfer taxes apply to most Michigan sales, charged per $500 (or fraction) of the value transferred. The seller customarily pays both.
Combined ($3.75 + $0.55 = $4.30 per $500): a $200,000 sale × 400 increments = $1,720 total transfer tax.
Checkpoint · Area 2 · Michigan Agency, Disclosure & Fair Housing
Question 1 of 10
Under MCL 339.2517, when must a Michigan licensee disclose the available types of agency relationships to a potential buyer or seller?
3 · Property, Legal Descriptions & Land Use
National content area.What real property is, the estates and rights an owner can hold, the government’s powers over land, and how land is legally described.[9]
Estates & the Bundle of Rights
is land, everything permanently attached to it (including ), and the . The largest estate is — absolute and inheritable. Use the MARIA tests (Method of attachment, Adaptability, Relationship, Intention, Agreement) to tell a fixture from personal property.
Government Powers & Encumbrances
Even fee simple is limited by four government powers, remembered as PETE: (zoning, codes), (with just compensation), taxation, and . An — a lien, , or deed restriction — limits title.
Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.
Legal Descriptions
Three methods describe land precisely: , the rectangular (government) survey system (townships, ranges, and ), and lot-and-block. One is 640 acres and one is 43,560 square feet.
Checkpoint · Area 3 · Property, Legal Descriptions & Land Use
Question 1 of 10
Which of the following is a key distinction between the exercise of police power and the exercise of eminent domain?
4 · Ownership, Title Transfer & Recording
National content area, with Michigan specifics. How people co-own property in Michigan, how a deed transfers title, and how recording protects ownership.[9]
Forms of Ownership in Michigan
The key difference is the right of survivorship. has it and needs the four unities; does not, so each share passes by will.
Married couples in Michigan commonly take title as , which adds survivorship and shields the property from one spouse’s separate creditors. A Michigan splits legal and equitable title between seller and buyer.
| Form | Survivorship? | Who can hold it |
|---|---|---|
| Severalty | N/A — sole owner | One person or entity |
| Tenancy in common | No — passes by will | Any number of co-owners |
| Joint tenancy | Yes — to survivors | Co-owners with the four unities |
| Tenancy by the entirety | Yes — to surviving spouse | A married couple in Michigan |
Deeds, Recording & Title
A deed conveys title from grantor to grantee. The (Michigan’s covenant warranty deed) gives the most protection; a gives none. Title passes on delivery and acceptance, not on recording — but recording at the county register of deeds gives constructive notice. protects against prior defects.
Checkpoint · Area 4 · Ownership, Title Transfer & Recording
Question 1 of 10
Four siblings own a farm as joint tenants. One sibling becomes financially troubled, and a creditor obtains and forces the sale of that sibling's interest at a judicial sale to satisfy a judgment. After the forced sale, how does the buyer at that sale hold title relative to the three remaining siblings?
5 · Property Value & Appraisal
National content area.What creates value, the three approaches an appraiser uses, and how a licensee’s CMA differs from a formal appraisal.[9]
Value Principles
is the most probable price under fair conditions — an opinion, distinct from the actual market price. The basis of value is : the legal, possible, feasible, and most profitable use of a site. A helps price a listing; a formal is an impartial USPAP-compliant opinion by a licensed appraiser.
The Three Approaches to Value
An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.
The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.
Checkpoint · Area 5 · Property Value & Appraisal
Question 1 of 10
When developing net operating income for the income capitalization approach, an appraiser starts with potential gross income. Which of the following is properly deducted to reach net operating income?
6 · Contracts & Agency (National)
The single largest national area. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.[9]
Contract Law & Listings
A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable.
| Listing type | Who earns the commission |
|---|---|
| Exclusive right-to-sell | The listing broker — no matter who finds the buyer |
| Exclusive agency | The broker, unless the owner sells it themselves |
| Open listing | Only the broker who actually finds the buyer |
| Net listing | Broker keeps the amount above the seller's set price — a conflict of interest |
Agency & Fiduciary Duties
is a fiduciary relationship between agent and principal. The duties are OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Confidentiality survives the end of the relationship.
Checkpoint · Area 6 · Contracts & Agency (National)
Question 1 of 10
A salesperson meets a prospective buyer at a property and, before any substantive discussion, hands the buyer a form explaining that the salesperson represents the seller. What is this form an example of?
7 · Real Estate Practice & Fair Housing
National content area. Fair housing, handling client money, and the leasing work a licensee does day to day.[6]
Fair Housing
The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.[6] In Michigan, the Elliott-Larsen Civil Rights Act adds more classes and is enforced through the Michigan Department of Civil Rights. The classic violations are , blockbusting, and redlining.
| Practice | What it is |
|---|---|
| Steering | Guiding buyers toward or away from areas by protected class |
| Blockbusting | Inducing panic selling by claiming a protected class is moving in |
| Redlining | A lender refusing to lend or insure in an area by its makeup |
Trust Funds, Leases & Conduct
A broker must keep client funds — like — in a separate trust account; is a violation. Commission rates are always negotiable, and fixing them with competitors is an antitrust violation. A lease conveys the right to use property for a term in exchange for rent (landlord = lessor, tenant = lessee); Michigan residential leases are governed by state landlord-tenant law.
Checkpoint · Area 7 · Real Estate Practice & Fair Housing
Question 1 of 10
When a real estate firm purchases the National Do Not Call Registry data and removes listed numbers before a calling campaign, what compliance objective is the firm meeting?
8 · Disclosures & Environmental Issues
National content area. What a seller and agent must reveal, and the environmental hazards the exam expects you to recognize.[8]
Material Facts & Property Disclosure
A — anything that would affect a buyer’s decision or price — must be disclosed, including known . In Michigan the seller uses the Seller’s Disclosure Statement, and the old rule of caveat emptor is now limited by disclosure law.
Environmental Hazards
The most heavily tested federal rule is the : for housing built before 1978, the seller must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day inspection window.[8] In Michigan, wetlands and contamination are regulated by .
| Hazard | What to know |
|---|---|
| Lead-based paint | Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window |
| Radon | Odorless radioactive gas from soil; can accumulate indoors |
| Asbestos | Old insulation/flooring; remove or encapsulate to control fibers |
| Mold | Grows in damp areas; may require disclosure and remediation |
| Underground storage tank | Can leak and contaminate soil and groundwater |
Checkpoint · Area 8 · Disclosures & Environmental Issues
Question 1 of 10
Radon enters a home primarily from which source?
9 · Financing & Settlement
National content area, with key Michigan differences. The instruments that secure a loan, how Michigan forecloses, the main loan types, and what happens at closing.[7]
Notes, Mortgages & Foreclosure
A promissory note is the borrower’s promise to repay; a mortgage pledges the property as collateral. Michigan is a lien-theory state that allows — a non-judicial sheriff’s sale after published notice — followed by a statutory redemption period during which the borrower may reclaim the property. Judicial foreclosure is also available.
- 1 · Purchase agreementBuyer and seller sign a binding purchase agreement; earnest money is deposited within 2 banking days into the broker's trust account.
- 2 · Title & financingA title company searches title and issues title insurance; the buyer's lender underwrites the loan secured by a mortgage.
- 3 · SettlementAt closing the escrow/title agent disburses funds; the seller pays the state and county transfer tax.
- 4 · RecordingThe deed is recorded with the county register of deeds, giving constructive notice and passing marketable title to the buyer.
Michigan is a lien-theory, mortgage state that permits foreclosure by advertisement(a non-judicial sheriff’s sale) with a statutory redemption period.
Loan Types, Lending Laws & Closing
Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk. Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.[7] At closing, a neutral escrow holder disburses funds, and the deed is recorded.
Checkpoint · Area 9 · Financing & Settlement
Question 1 of 10
A loan officer explains that on a fully amortized mortgage, the scheduled payment stays level for the entire term even though the split between interest and principal shifts. What happens to the outstanding loan balance over the life of such a loan?
10 · Real Estate Math
Tested on both portions. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, proration, and the Michigan transfer tax.[4]
Area, Commission & Net
Area of a rectangle is length × width; convert square feet to acres by dividing by 43,560. Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate).
| To find | Formula |
|---|---|
| Commission | Sale price × commission rate |
| Price for a target net | Net ÷ (1 − commission rate) |
| Loan-to-value (LTV) | Loan amount ÷ value (or price) |
| Value (income approach) | Net operating income ÷ capitalization rate |
| Michigan transfer tax | (Price ÷ 500, rounded up) × 3.75 + county $0.55) |
LTV, Taxes & Proration
is loan ÷ value. splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date. Michigan property tax is the taxable value × the millage rate (one mill = $1 per $1,000).
Checkpoint · Area 10 · Real Estate Math
Question 1 of 10
A sale closes on April 30 and the seller has not yet paid the calendar-year property taxes of $4,380, which the buyer will pay later. Using a 365-day year and charging the seller for the days the seller owned the property (120 days, January 1 through April 30), how much is debited to the seller and credited to the buyer at closing?
How to Use This Study Guide
A study guide is a map, not the whole territory — pair it with our free Michigan practice questions and flashcards. Lead with license law and Michigan agency and disclosure, then layer in the national content areas and lock in the math.
- 1
Read a content area here
Work through one area at a time, Michigan law first, then the national portions.
- 2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
- 3
Drill the gaps
Send your weak area straight into the free Michigan practice questions and flashcards.
- 4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.
Michigan Real Estate Concept Questions
Common Michigan and national real estate principles the salesperson exam actually tests — covering LARA license law, Michigan agency and disclosure, the Seller Disclosure Act, fair housing, transfer tax, and the national content areas. Tap any card for a short, exam-ready answer backed by an official source (LARA, the Michigan Legislature / MCL, HUD, CFPB, EPA, or IRS), then test yourself on them as flashcards.
Michigan Real Estate Glossary
Quick definitions for the terms you’ll see most across the Michigan real estate exam:
- Acre
- A unit of land area equal to 43,560 square feet.
- Agency
- A fiduciary relationship in which an agent represents a principal in dealings with third parties.
- Agency disclosure (MCL 339.2517)
- Michigan's requirement that a licensee disclose, in writing, the available types of agency relationships before the consumer shares confidential information.
- Appraisal
- An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
- Article 25 of the Occupational Code
- Public Act 299 of 1980 (MCL 339.2501 et seq.) — the Michigan statute governing real estate broker and salesperson licensing and practice.
- Board of Real Estate Brokers and Salespersons
- A nine-member Michigan board (six professional and three public members) that works with LARA to set standards and advise on regulation.
- Bundle of rights
- The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
- Bureau of Professional Licensing (BPL)
- The LARA unit that administers real estate licensing, processes applications, and handles licensee discipline in Michigan.
- Capitalization rate
- The rate of return on an income property: net operating income / value. A higher cap rate implies more risk and lower value.
- Commingling
- Improperly mixing a client's trust funds with the broker's own or business funds — a license-law violation in Michigan.
- Comparative market analysis (CMA)
- A licensee's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
- Contingency
- A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal contingencies.
- Contract
- A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
- County real estate transfer tax
- A county transfer tax of 500 (or fraction) of value in most Michigan counties, paid by the seller.
- Disclosed consensual dual agency
- Representing both buyer and seller in one transaction; lawful in Michigan only with the knowing, informed written consent of both parties.
- Dower (abolished)
- A common-law life interest a widow held in her deceased husband's land; abolished in Michigan effective April 6, 2017 (2016 PA 489).
- Earnest money
- A buyer's good-faith deposit showing serious intent; held in trust and usually applied to the price at closing.
- Easement
- A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
- EGLE
- Michigan's Department of Environment, Great Lakes, and Energy, which regulates wetlands, contamination, and water resources.
- Elliott-Larsen Civil Rights Act
- Public Act 453 of 1976 — Michigan's primary fair-housing statute, adding age, height, weight, marital status, sexual orientation, and gender identity to the federal classes.
- Eminent domain
- Government's power to take private property for public use through condemnation, paying the owner just compensation.
- Employing broker
- The designated licensed broker under whom a Michigan salesperson must work; the salesperson cannot operate independently and is paid commission through the broker.
- Encumbrance
- Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
- Escheat
- The reversion of property to the state when an owner dies with no will and no legal heirs.
- Fair Housing Act
- The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
- Fee simple
- The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
- Fiduciary duties
- The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
- Fixture
- An item of personal property attached to real property so as to become part of it and transfer with the land. The MARIA tests decide whether an item is a fixture.
- Foreclosure by advertisement
- Michigan's non-judicial foreclosure — the lender publishes notice and sells at a sheriff's sale without a lawsuit, followed by a statutory redemption period.
- General warranty deed
- The deed giving the most protection; the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
- Highest and best use
- The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
- Joint tenancy
- Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
- Land contract
- A Michigan installment contract for deed: the seller keeps legal title while the buyer holds equitable title and makes installment payments.
- LARA (Department of Licensing and Regulatory Affairs)
- The Michigan state department whose Bureau of Professional Licensing licenses and regulates real estate salespersons and brokers under Article 25 of the Occupational Code.
- Latent defect
- A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
- Lead-based paint disclosure
- The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
- Listing agreement
- A contract employing a broker to find a buyer for the owner's property in exchange for compensation.
- Loan-to-value ratio (LTV)
- The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
- Market value
- The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
- Material fact
- A fact that would affect a reasonable buyer's decision to buy or the price they would pay; in Michigan it must be disclosed even if the buyer does not ask.
- Metes and bounds
- A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.
- Net operating income (NOI)
- Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
- Police power
- Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
- Proration
- Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
- PSI
- The testing vendor that administers Michigan's real estate salesperson and broker licensing examinations.
- Quitclaim deed
- A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
- Real Estate Education Fund
- A Michigan fund financed by $15 of each license fee per 3-year cycle (MCL 338.2237) that supports real estate education programs.
- Real Estate Enforcement Fund
- A Michigan fund used by LARA and the Attorney General only to investigate and enforce against unlicensed activity and real estate fraud (MCL 338.2237).
- Real property
- Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
- RESPA
- The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
- Section (survey)
- One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township in the rectangular survey system.
- Seller Disclosure Act
- Public Act 92 of 1993 (MCL 565.951 et seq.) requiring a Seller's Disclosure Statement for transfers of 1-to-4 residential dwelling units.
- Seller's Disclosure Statement
- A statement of the property's condition known by the seller, delivered before signing a binding purchase agreement; a disclosure, not a warranty.
- State Real Estate Transfer Tax (SRETT)
- Michigan's state transfer tax of 500 (or fraction) of the value transferred, customarily paid by the seller.
- Statute of frauds
- The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
- Steering
- Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
- Tenancy by the entirety
- A survivorship co-ownership reserved for married couples in Michigan; protects the property from one spouse's separate creditors.
- Tenancy in common
- Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship.
- TILA
- The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
- Title insurance
- A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
- Transaction coordinator
- On Michigan's statutory agency disclosure form, a licensee who is not the agent of either party but provides services to complete the transaction.
Free Michigan Real Estate Exam Study Materials & Resources
Everything you need to prepare for the Michigan real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free Michigan study materials for active recall, timed practice, and last-minute review:
- Michigan Real Estate Practice Test — exam-style questions across the Michigan and national content areas, with explanations.
- Michigan Real Estate Flashcards — active-recall decks for LARA law, Michigan disclosure forms, fiduciary duties, and math formulas.
Michigan Real Estate Exam Study Guide FAQ
The Michigan salesperson exam, administered by PSI, has 115 multiple-choice questions split into two portions: an 80-question national/general portion and a 35-question Michigan state-specific portion. The portions are scored separately, and you must pass both.
You need 70% on each portion to pass — that is 56 of 80 correct on the national portion and 24 of 35 correct on the Michigan state portion. If you pass one portion but fail the other, you may retake just the portion you failed.
You are allotted about 180 minutes (three hours) to complete both portions of the Michigan salesperson exam in one session at a PSI test center. A basic calculator is available for the math questions.
The Michigan portion tests state law: LARA and Article 25 of the Occupational Code, agency disclosure under MCL 339.2517, the Seller Disclosure Act, the Elliott-Larsen Civil Rights Act, the real estate transfer tax, escrow and trust-account rules, and Michigan foreclosure (foreclosure by advertisement).
Michigan requires 40 clock hours of LARA-approved prelicensure education, including at least 4 hours of civil rights law and equal opportunity in housing, completed within the 36 months before applying. You then apply through LARA and activate the license under an employing broker. Confirm current rules with LARA.
Yes — both portions include calculation questions covering commission and splits, seller net, loan-to-value, property taxes and mills, area and acreage, proration, and the Michigan transfer tax ($3.75 state plus $0.55 county per $500 of value). Remember 43,560 square feet per acre and 5,280 feet per mile.
No. Unlike many states, Michigan does not maintain a consumer real estate recovery fund. Instead, license fees support a Real Estate Education Fund ($15 per cycle) and a Real Estate Enforcement Fund used by LARA and the Attorney General to investigate unlicensed activity and fraud (MCL 338.2237).
A Michigan salesperson or broker license runs on a 3-year cycle. Each cycle requires 18 hours of approved continuing education, including at least 2 hours per year on real estate laws, rules, and court cases. Confirm the current CE categories and renewal fees on the LARA website.
Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.
References
- 1.Michigan Department of Licensing and Regulatory Affairs. “Real Estate Brokers and Salespersons.” LARA (michigan.gov/lara). ↑
- 2.Michigan Legislature. “Occupational Code, Article 25 (Act 299 of 1980).” legislature.mi.gov. ↑
- 3.Michigan Legislature. “Seller Disclosure Act (MCL 565.951 et seq.).” legislature.mi.gov. ↑
- 4.PSI Services. “Michigan Real Estate Candidate Information Bulletin.” PSI / LARA. ↑
- 5.Michigan Legislature. “Elliott-Larsen Civil Rights Act (Act 453 of 1976).” legislature.mi.gov. ↑
- 6.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
- 7.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
- 8.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
- 9.U.S. Geological Survey. “How is the Public Land Survey System organized?.” USGS. ↑
Sources for the concept answers
Every answer in the Michigan real estate concept questions above is drawn from an authoritative primary source:
- Michigan Department of Licensing and Regulatory Affairs. “Real Estate Brokers and Salespersons.” LARA (michigan.gov/lara).
- Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS.
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